JPMorgan cut Polymarket as banking client over regulatory concerns

JPMorgan Chase terminated its banking relationship with prediction market platform Polymarket in October, citing regulatory concerns, according to the Wall Street Journal. Despite the severed banking connection, Polymarket maintains a close, active relationship with JPMorgan across multiple entities, with CEO Shayne Coplan speaking at three of the bank's events in the past year.

In April, JPMorgan invited wealth-management clients to participate in Polymarket's Series E fundraising round, which valued the company at $14.5 billion. This move comes as JPMorgan faces scrutiny over alleged debanking, or the improper closure of customer accounts for political reasons, following an order from President Donald Trump to investigate banks engaging in such conduct.

Donald Trump Jr., the president's son, has a stake in Polymarket through his investment fund, 1789 Capital. While prediction markets are attracting regulatory attention from both state and federal agencies, including the Commodity Futures Trading Commission investigating Polymarket and New York's attorney general suing Kalshi, a rival platform, over alleged violations of state gambling laws, legal battles are ongoing in over a dozen states.

New York City Council Speaker Julie Menin has launched an investigation into the marketing practices of Polymarket and rival platforms, focusing on concerns such as undisclosed influencer partnerships and staged trades promoted on fake versions of the Polymarket platform.